SMG Customer Satisfaction Index - UK report analysing impact of customer service in retailers on sales and brand loyalty.

1. Customer Satisfaction Index
Championing the UK Customer Experience
A research report by
Service Management Group
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used under license.

2. Executive Summary
SMG used 20 years’ experience to analyse results from across all parts of the UK
• SMG, a customer insight agency, analysed the results of feedback from 108,048 genuine
UK retail and restaurant customers during 2011
• SMG used this insight to measure customer satisfaction levels in the UK and to establish
the Customer Satisfaction Index
• The report aims to provide the UK retail and restaurant industry with a clear
understanding of the customer experience, what the consumer values and how to meet
these expectations to maximise customer loyalty and spend
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3. Key Findings
This report presented some astounding and very telling data
• The SMG Customer Satisfaction Index in the UK has a score of 6.1 (out of 10)
• Spend increases by 39 per cent per sale when customers are assisted
• This equates to £45.38 billion in missed sales last year due to poor customer service
• The worst places in the UK for customer service are Worcestershire, Dorset and
Berkshire, whilst the best places are Hereford, Northumberland and East Yorkshire
• Customer service drops throughout the day, having a direct impact on sales
• Customer satisfaction mirrors the ‘Personal Happiness Index’ with customers aged
between 25-49 the least satisfied with their customer experience
• British men are more likely than women to complain about their customer experience
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4. Smile and Spend
The Value of a Smile
Sales increase by 39 per cent when a SMG calculated the “floating pound”-
customer receives assistance £45.38 billion is missed in sales due to
poor service*
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5. Smile and Spend
The Value of a Smile
Receiving assistance was the largest driver of consumer spend – impacting across all
seven days of the week
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6. Regional Happiness
Worcestershire, Dorset and Berkshire all below the national average
The regional map Cornwall, North East
highlights that the Scotland, Northern
highest satisfaction is Ireland, West Wales,
found at the geographical Norfolk and East
extremes of the country Yorkshire all surpassed
the national average
score
London performs
significantly lower than
the rest of the UK
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7. London Lags
Brands are not offering a consistent experience across the country
UK customers are more Staff are, on average, friendlier Speed at the till is
satisfied outside of outside of London considerably quicker
London outside of London
7
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8. Afternoon Blues
Retailers are not delivering a consistent in-store experience throughout the day
Key shopping times at lunch and after Staff friendliness, availability and
work are not being capitalised on cleanliness are in decline during the post-
5pm ‘urge to splurge’
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9. Personal Happiness
The middle muddle
Customer satisfaction Customers aged between 25-49 External factors such as
mirrors the ‘Personal are the least satisfied with their disposable income,
Happiness Index’ customer experience children and ambition
U-bend are likely to affect this
age group more
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10. Satisfaction
The problem with sex
Women are generally happier with their in-store journey, and more likely to return,
recommend and report a better experience
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11. Satisfaction
The problem with sex
More men than women are experiencing a problem while in a store. In addition, men
are receiving a better level of service recovery than women.
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12. Recommendations
What we suggest you do with this data
• Encourage staff to use open statements to prompt requests for assistance
• Highlight the impact of friendliness and assistance on sales and customer satisfaction
levels
• A consistent brand experience across at all times across channels is important to improve
loyalty
• Reassurance by staff to queuing customers is just as important as store design
• Adopting a snake queue system can be effective. Not only does it have the perception that
it is moving fast, it is fair with little risk of being served out of turn
• Product availability is occasionally an uncontrollable factor, but through product
knowledge staff can offer a realistic alternative
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13. About SMG
A little about Service Management Group
• SMG (Service Management Group) is the leading international customer experience
research firm. Driving business results by partnering with brands to improve customer
loyalty and employee engagement, SMG provides actionable insights and
recommendations at both the front-line and senior executive levels.
• SMG has developed a proprietary suite of research services combining world-class
technology with unmatched industry expertise. Each year, the firm evaluates over 70
million customer experiences in 64 countries and 29 languages for more than 200 brands.
Methodology
• Continuous customer insight programmes are used regularly by a range of retail and
leisure outlets across the UK. Data is collected when a customer completes an online
feedback form to respond to questions relating to the entire customer journey.
• Calculation of the “floating pound”: In 2011, UK retail sales totaled £303 billion. Given the
SMG Customer Satisfaction Index score (6.1), this equates to £45.38 billion in sales that
retailers are missing due to poor customer service.
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14. How to reach us
Jeremy Michael
Managing Director
3 Holywell Hill, St Albans, Hertfordshire AL1 1ER
T: +44 (0)20 3463 0700
F: +44 (0)20 3463 0701
www.smg.com/uk
©Service Management Group, Inc. and/or Service Management Group Ltd. “SERVICE MANAGEMENT GROUP®” and related trademarks are trademarks of Service Management Group, Inc., and are
used under license.